Turned 18, Took 6k Loan, Had offer Of £3997 Payback?

JamesML_2

Hi there, basically the day i turned 18 i was still in my first year of an electrician apprenticeship on £120 a week.

I asked for a loan and the Halifax Bank Of Scotland offered me a £6000 Loan, £1700 Credit Card and £300 Overdraft.

I went straight from Bank to evans Halshaw Garage, Boguht a Clio Sport for £5500 plus my old BMW 318.

Lent Car to my friend and he wrote it off, he didnt have insurance, and it took him 9 months to pay me £5500 back.

During this time i foolishly ignored the halifax, didnt pay any repayments and maxed the £1700 Credit card and £300 overdraft.

Nearly 2 years onwards, im on a decent wage (£600 a Week) and wanting to sort this huge financial mess out. My Credit card had reached £2100 due to interest etc and my overdraft had reached over £600 due to charges. My loan was at £7000 nearly.

then i got a letter from Moorcroft debt collectors offering me a 75% repaymenton Loan, saying if i agree to pay £3997 the rest of the loan will be wiped. I called up and arranged to pay this over 3 months, payed first one and next one due tommorrow, then final on 28th October.

I then phoned credit card and payed it up to date, theres is now £1600 remaining to pay.

I also payed overdraft down so im now £250 overdrawn which is ok as limit is £300.

Basically i could pay off credit card and overdraft in a oner today, but what i want to know is, obviously my credit rating has been badly affected, but by me paying everything, will i be able to get credit again, for example if i put £10000 cash down on a car, would i get a further say £10000 on finance. Or would i be able to get a mortgage without a gaurantor?

how long will it take for my crwedit rating to be good again?

Thank You.

p.s- I also feel i should never have been given so much money in first place!

lcazma70

Hi James, we've all been there so dont feel too bad!! \you have done so well. i agree the banks have been nvesting in you right from the start but you will rebuild your credit worthiness and lesson learnt. Thereare already posts on the board which can answer your questions as to how to rebuild your credit history so take a look there. Others will be here soon to advise but just want ed to say I admire you for pulling yourself back up. best wishes:T

scottn

James, really sorry to hear your story. I'm sure the other on here will advise soon. My advice would be as follows:
- keep making your repayments and pay everything off
- use some of the free online ways via MSE to check your credit rating
- start to rebuild your credit rating, possibly by getting a high interest rate credit card, making some regular purchases and ALWAYS repaying the balance in full everymonth - e.g. buy all your petrol on it. 6 months - a year of satisfactory repayments and you'll be well on the way to getting a good rating.

Good luck

PS. Btw are you self employed or do homers?!

JamesML_2

I work for a company, started witht hem about a motnh ago, however before that i was in middle of setting up my own company. got 5000 A5 flyers, 1000 Business card etc... done.

I still do a lot of work on the side which adds a fair bit on top of the £600 a week aswell.

So If anyone on here needs any electrical work done, give me a shout, good rates!

[Deleted User]

James, have you actually checked your credit report to see what state it's in?

JamesML_2

Paid £1300 To Moorcroft today, so one more payment of £1300 to go on 28th October.

Paid £200 to credit card today, down to £1550.

Paid £100 off overdraft, down to £150.


No i have not done a credit report, where can i get one?

Thanks

epsilondraconis

JamesML wrote: »

No i have not done a credit report, where can i get one?

Thanks

Have a read through this:

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Well done on getting things sorted...